SEPTA is postponing the purchase of new buses, upgrades to a Regional Rail station and the expansion of a railroad maintenance facility by transferring $394 million in capital funds to its operating budget.
On Thursday, the SEPTA board formally approved the transfer and amendments to its capital project plans for fiscal year 2026. Officials said the postponed projects will not impact rider safety and will help close the annual $213 million budget shortfall for the next two years, but a long-term funding solution is still necessary.
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"Using capital funds for operations keeps us moving today, but it pushes those critical investments further down the road," SEPTA General Manager Scott Sauer said in a statement. "We stand ready to continue working with leaders in Harrisburg to develop a long-term solution that addresses both our operating needs and the capital investment so critical to our future."
The five projects that were delayed include:
• The replacement of 247 hybrid diesel-electric buses by three years ($256.7 million)
• The final phase of the Frazer railroad facility expansion which will add maintenance capacity ($38.7 million)
• Upgrades that will bring Bristol Station's platforms on the Trenton Line in compliance with the American with Disabilities Act. ($46.3 million)
• The purchase of hydrogen and electric-powered buses for the transit authority's zero-emission test program ($41 million)
• Conversion of diesel-hybrid buses to battery-electric technology ($11.3 million)
Another 44 infrastructure projects already were scaled back or suspended in an effort to save around $1.8 billion over the next 12 years, SEPTA said. Upgrades to the Market-Frankford Line and trolley cars will not be impacted.
A spokesperson with SEPTA could not be reached for comment Friday.
SEPTA also has less than a week to complete its inspection of its aging Silverliner IV cars prompted by an emergency order from the Federal Transit Administration that claimed the cars pose an "immediate and unacceptable safety risk."
SEPTA's funding issues were a key component of Pennsylvania's stalled budget negotiations. The state legislature is in its fourth month without an approved budget. Last month, PennDOT approved SEPTA's request to transfer $394 million to its operating budget to reverse drastic service cuts. The request was made after a judge ordered SEPTA to restore regular service.